If a Share of Stock in Dell Sells for $70

question 163

True/False

If a share of stock in Dell sells for $70, the retained earnings per share are $5, and the dividend per share is $2, then the price-earnings ratio is 10.

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Definitions:

Entrepreneurial Firms

Companies that pursue opportunities without regard to the resources they currently control, focusing on innovation and market disruption.

Radical Innovation

A fundamental change that disrupts or creates whole new industries by introducing groundbreaking products, technologies, or processes.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations and resulting in significant military and civilian casualties.

Entrepreneurial Transformation

The process by which individuals or businesses evolve to adapt to changing market demands and opportunities innovatively.